Bitcoin Gets Slammed by China as BofA Touts its Potential

Following massive interest that has seen Bitcoin 's value increase more than 7,000 percent since the beginning of the year, China's central bank has forbidden financial companies from processing Bitcoin-related transactions. Chinese regulators are reportedly considering rules that would govern the behavior of online Bitcoin exchanges. In a statement on its website, the People's Bank of China said that Bitcoin does not have legal status as a currency and should not be used as such, though it can be traded as a commodity. While individuals are still free to purchase and exchange the digital currency, the Chinese government is prohibiting financial firms and payment companies from buying or selling it, storing it or issuing Bitcoin-related financial products. China strictly regulates its national currency, the yuan, but digital currencies provided a backdoor for currency spec...